Key Features of WCTL

• Purpose: To supplement working capital requirements not covered by existing credit limits.
• Tenure: Typically ranges from 1 to 5 years depending on the lender’s policy and business profile.
• Interest Rate: Slightly higher than traditional working capital limits; may be fixed or floating.
• Repayment: Structured in EMIs (Equated Monthly Installments) or quarterly repayments.
• Security: Usually secured by current assets, fixed assets, or a combination thereof.
• Disbursement: Lump sum disbursement into the borrower’s account upon approval.

Eligibility Criteria

• Businesses with a proven track record of operations and healthy financials.
• Entities that have exhausted or require an enhancement over their existing working capital limits.
• Proprietorships, partnerships, private limited companies, and LLPs can apply.

Advantages of WCTL

• Provides quick liquidity to meet day-to-day operational requirements.
• Helps businesses manage temporary cash flow mismatches effectively.
• Structured repayments reduce interest burden over time.
• Improves credibility with suppliers and clients through consistent cash flow management.